American Hospital Association Sues Federal Government Over 340B Pilot Program Targeting Drug Reimbursement Changes

The American Hospital Association, along with multiple hospital systems, has filed a lawsuit against the federal government in response to a planned 340B pilot program. The legal action challenges the Trump Administration’s initiative, which aims to modify how hospitals participating in the 340B drug pricing program are reimbursed for outpatient drugs. The plaintiffs argue that the proposed changes could significantly impact their ability to provide affordable medications and services to vulnerable populations.

The 340B program, established in 1992, allows eligible hospitals and clinics to purchase prescription drugs at discounted rates. The pilot program in question seeks to test new reimbursement methods for these facilities. Critics of the plan claim it may reduce financial resources available for patient care, particularly for low-income and underserved communities. The lawsuit reflects broader concerns within the healthcare industry about potential disruptions caused by changes to this long-standing program.

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Date: December 2, 2025

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